Prozone Realty Limited , a prominent real estate developer, is pursuing a strategic expansion into tier-2 cities with a focus on mixed-use projects aimed at long-term value creation. The company's latest financial results for Q2 FY26 reflect this strategy, showing stable performance and continued emphasis on retail and residential developments.

Expansion Strategy

Prozone Realty is actively developing large-scale mixed-use projects in tier-2 cities, capitalizing on the urbanization trends in these areas. The company's approach involves allocating 75% of its land for residential and commercial developments under a build-and-sell model, while the remaining 25% is dedicated to retail spaces following a build-and-lease model.

Retail Performance

The company's retail segment continues to show resilience, with stable occupancy rates:

• Ch Sambhaji Nagar Mall: 93% leased (excluding lower ground floor)
• Coimbatore Mall: 96% leased

These high occupancy rates underscore the strength of Prozone Realty's retail portfolio in tier-2 markets.

Residential Projects

Prozone Realty's residential projects are gaining traction:

• Coimbatore Residential: Received 38 new bookings worth Rs 234.00 million in Q2 FY26
• Nagpur Residential: Completed 4 towers with 336 apartments, with part occupancy certificates obtained for 242 units

Financial Highlights (Q2 FY26)

• Total Income: Rs 4,912.29 million
• EBITDA: Rs 204.10 million (24% increase year-over-year)
• Net Profit: Rs 34.20 million (increase from Rs 3.90 million in Q2 FY25)

Segment-wise Revenue

The company's CEO stated, "Our focus on mixed-use developments in tier-2 cities is yielding positive results. We are maintaining stable retail occupancy above 90% while strategically launching residential phases to enhance cash flows."

Prozone Realty's strategy of balancing rental income stability from its retail assets with the cash flow generation from residential and commercial sales positions the company for growth in India's evolving real estate market.

As the company continues to expand its asset portfolio and capitalize on the urbanization trends in tier-2 cities, investors and stakeholders will be watching closely to see how this strategy unfolds in the coming quarters.

Prozone Realty Limited has received requests from four members of its promoter group seeking reclassification from the 'Promoter Group' category to the 'Public' category. This move could potentially alter the company's shareholding structure and governance dynamics.

Reclassification Requests

The requests were received from the following individuals and entities:

1. Rakesh Rawat Family Trust
2. Ghanshyam Rawat
3. Pushplata Rawat
4. Vandana Vaidh

Current Shareholding

Key Points of the Requests

• All applicants have stated that they have no influence over the company's business decisions.
• They are not engaged in the management or day-to-day affairs of the company.
• The applicants do not have any rights to appoint directors or control policy decisions.

Next Steps

Prozone Realty has confirmed that it will process these requests in compliance with Regulation 31A of the SEBI Listing Regulations. The company plans to:

1. Present the requests to the Board of Directors within two months for analysis.
2. Seek necessary approvals from regulatory authorities, including stock exchanges.

Regulatory Compliance

The applicants have provided assurances that they meet the conditions for reclassification as per SEBI regulations, including:

• Not holding more than 10% of the total voting rights in the company
• Not exercising control over the company's affairs
• Not having special rights through formal or informal arrangements
• Not being represented on the Board of Directors
• Not acting as Key Managerial Personnel
• Not being classified as 'willful defaulters' or fugitive economic offenders

Impact on Shareholding

If approved, this reclassification would move 35,87,416 shares (approximately 2.35% of the company's equity) from the 'Promoter Group' category to the 'Public' category.

The company will now follow the prescribed regulatory process for these reclassification requests. Shareholders and investors should monitor further announcements for updates on this corporate action.